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Urea price trends across China on March 6 Author/Source: Yuege Agri-Materials Website Date: 2020-03-06 Clicks: 122 The domestic urea market continues to show an upward trend. Purchases in the agricultural sector are driven by actual demand, while industrial demand is also improving. It is currently the peak season for producing blended BB fertilizers, and composite fertilizer manufacturers are increasing their production capacity. There is strong demand for large-grained urea. Recently, board manufacturing companies have also seen a significant improvement in their operations, with an increase in orders from suppliers. At present, most manufacturers require a prepayment period of around 2-3 weeks, and the overall market liquidity is improving gradually. Manufacturers can ship products smoothly without any inventory pressure, and they still have a strong inclination to maintain high prices. It is expected that the domestic urea market will continue to rise in the short term, driven by strong demand. Hualu Hengsheng’s medium-sized particles are priced at 1780 (a 10% increase), while large-sized particles cost 1970 (no change); Hebei Dongguang’s small-sized particles are priced at 1770 (no change), and large-sized particles cost 2020 (a 10% increase); Henan Xinlianxin’s products are priced at 1790 (a 40% increase); Shanxi Fengxi’s products are priced at 1730 (no change); Jiangsu Linggu’s products are priced at 1850 (no change); Anhui Haoyuan’s products are priced at 1810 (no change); Inner Mongolia Yiding’s products are priced at 1640 (no change). Shaanxi Shanhua’s products are priced at 1790 for local sales, and 1740 for external sales; Xinjiang Yankuang’s products are priced at 1410 (no change). The urea production facility in Henan Xinxinxin is operating normally, with a current daily output of 5,500 tons, of which more than 2,000 tons are regular urea. The ex-factory price for small particles has risen by another 20 yuan per ton, reaching 1,780 yuan per ton. Previous orders are being processed as usual, industrial orders are being followed up on, and shipments are proceeding smoothly. The urea production unit at Shandong Luxi Chemical is undergoing a long-term shutdown for maintenance; therefore, no quote can be provided for medium-grain urea at the moment. Purchases for agricultural use are satisfactory; currently, the prevailing ex-factory price for small-grained products from local enterprises is around 1760–1770 yuan per ton. The urea production plant in Henan Jin Kai is operating normally, with a daily output of around 4,000 tons. Today’s price has increased by 10–30 yuan per ton; the ex-factory price for medium-sized particles is 1780 yuan per ton, while that for large-sized particles is 1900 yuan per ton. The final price will be determined upon settlement. Orders are being processed in an orderly manner, downstream purchasing enthusiasm is high, and there is no pressure on shipments. Currently, the ex-factory prices of enterprises in the province range from 1,720 to 1,780 yuan per ton. In Shandong province, the ex-factory price for small and medium-sized particles is 1,760–1,830 yuan per ton. In Linyi, the market price for such particles is 1,840–1,850 yuan per ton. In Heze, the purchase price for small and medium-sized particles is around 1,820 yuan per ton; some companies have raised their prices by 10–30 yuan per ton. In Hebei province, the ex-factory price for small particles is around 1,770–1,790 yuan per ton, with the actual transaction price being around 1,750–1,760 yuan per ton. The ex-factory price for large particles is around 2,020 yuan per ton; some companies have increased their prices by 10–30 yuan per ton. In Henan province, the standard ex-factory price for small and medium-sized particles is 1,780–1,810 yuan per ton, with some companies raising their prices by 10–30 yuan per ton. In Anhui province, the standard ex-factory price for small particles is around 1,780–1,830 yuan per ton; some companies have increased their prices by 20 yuan per ton. In Jiangsu province, the standard price for small and medium-sized particles is around 1,800–1,820 yuan per ton, with some companies raising their prices by 10 yuan per ton. In Shanxi province, the price for small particles for external delivery is around 1,700–1,730 yuan per ton, while the price for large particles for new orders is around 1,860–1,880 yuan per ton; some companies have increased their prices by 20 yuan per ton. In Inner Mongolia, the standard price for small and medium-sized particles for external delivery is around 1,610–1,640 yuan per ton, while the price for large particles is around 1,770 yuan per ton, with prices remaining stable for now. In Hubei province, the standard ex-factory price for small particles is around 1,800 yuan per ton, with prices remaining stable. In Shaanxi province, the standard local sales price for small and medium-sized particles is around 1,790 yuan per ton, with prices remaining stable. In Guangxi province, the standard wholesale price for small and medium-sized particles is around 1,930–1,950 yuan per ton, with prices remaining stable. In Sichuan province, the ex-factory price for small and medium-sized particles is around 1,880–1,940 yuan per ton, with prices remaining stable. In Guangdong province, the standard wholesale price for small particles is around 1,930–1,960 yuan per ton, with prices remaining stable. In Xinjiang, the transaction price at the factory is around 1,450–1,500 yuan per ton, with some companies increasing their prices by 20 yuan per ton. In Jilin province, the price for small particles used in urea production is around 1,980 yuan per ton. Prices remain stable. The transaction price for small-grained urea in Heilongjiang is around 1,930–1,970 yuan per ton; prices remain stable as well. The freight cost for small-grained urea in Liaoning is 1,820–1,870 yuan per ton, with the actual transaction price subject to negotiation. Prices remain stable. The operating rate of compound fertilizer plants in North China has largely returned to its levels from the same period in previous years. Plywood factories in regions such as Shandong, Hebei, and Jiangsu are preparing to resume operations and have begun stockpiling supplies. Agricultural demand continues to drive replenishments, and as the fertilizer application season approaches, there is a high demand for rapid delivery. Demand for large particles remains strong, and the short-term supply gap is still significant. As the start-up date for the compound fertilizer factory in Hubei approaches on March 10, market prices have risen slightly. In the southeastern coastal markets, prices continued to rise slightly. International market prices continue to rise, and the clear trend of pandemic spread overseas may affect the supply capacity in international markets; close monitoring is required. Short-term prices are likely to remain strong and rise slightly.